How $4.3 Million in Crypto Almost Got Stolen in Phishing Scam

On-chain sleuth ZachXBT foiled a crypto phishing scheme to swipe $4.3 million in Artificial Liquid Intelligence (ALI) tokens.

This event underscores the critical role of vigilant cybersecurity efforts within the crypto community.

A hacker, employing the notorious Inferno Drainer, compromised a wallet containing 113,102,183 ALI tokens. The swift action taken thereafter is a testament to the power of community governance and expert intervention in the crypto ecosystem.

Upon learning of the breach, ZachXBT, alongside alarmed community members, promptly alerted the core team. Consequently, an emergency governance vote was convened. The community decided to burn the compromised tokens, effectively neutralizing the threat posed by the hacker.

“After seeing a message from Scam Sniffer, I immediately alerted the core team and investors who helped put together an emergency community vote to burn the stolen tokens after approval from the victim,” ZachXBT said.

Despite the proactive action from the community, the Artificial Liquid Intelligence’s token price has yet to recover. As of writing, ALI is trading at $0.03, down by around 7% in the past 24 hours.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

Notably, among the ALI token holders is billionaire entrepreneur Mark Cuban, whose investment acumen is well-documented. Cuban’s foray into ALI tokens, valued at over $480,000, underscores his belief in the potential of AI-driven crypto assets. His portfolio, rich with diverse altcoins, mirrors the breadth of his investment strategy.

Read more: 13 Best AI Crypto Trading Bots To Maximize Your Profits

This incident has highlighted the importance of community vigilance and the impact of quick, coordinated responses to cyber threats. ZachXBT’s investigative prowess has been instrumental in previous cases, such as the suspicious activities surrounding the crypto exchange BitForex. His findings on BitForex’s unusual outflows and subsequent withdrawal freezes have raised significant user concerns.

Moreover, his work extends beyond exposing exchange anomalies. Recently, ZachXBT uncovered a phishing scam that duped MicroStrategy’s followers on X, leading to substantial financial losses for unsuspecting victims.